Distressed consumer no longer boon for Wal-Mart

21/05/2010 14:44

Wal-Mart Stores Inc (WMT.N) says the U.S. consumer is still being pressured by jacketssoaring gasoline prices, high unemployment and little extra cash.
And while that is typically an economic environment inMoncler which Wal-Mart has excelled, circumstances may be different this time, analysts said on Tuesday.
"Their core customer is still in moncler vest worse shape than anybody else's," Edward Jones analyst Matt Arnold said.
Even slightly more affluent consumers have moved up and away fromMoncler Hoody Wal-Mart, leaving the retailer with shoppers who can only spend on basics, he added.
On Tuesday, Wal-Mart posted quarterly earnings that beat analyst expectations, largely due to moncler saletight expense controls, while sales at its U.S. discount stores open at least a year fell a worse-than-expected 1.4 percent.
During the recession, Wal-Mart attracted customers frommoncler men department stores and competitors such as Kohl's Corp (KSS.N) with low prices. But in recent months, as consumer sentiment improved, it lost ground to rivals such as Target Corp (TGT.N) and to department stores.
However, Wal-Mart executives believe that new evidence of moncler womeneconomic trouble, such as persistently high unemployment and a slower recovery of the housing market, could help the world's largest retailer hold on to shoppers. Home improvement chains Home Depot Inc (HD.N) and Lowe's Cos Inc (LOW.N) said this week that a rebound might be pushed into next year.
"Have we lost some customers that were picked upmoncler clothing during the most difficult times? Possibly, yes," Chief Financial Officer Tom Schoewe told reporters on a conference call.
But he said declining traffic was mainly caused by Moncler Jacketsan estimated 41 percent jump in gasoline prices from a year ago.
The weak economic environment is when consumers need the low prices Wal-Mart offers the most, Schoewe added.
"Our customer remains under pressure and overMoncler Jackets on sale the long haul, I believe that speaks very positively to the opportunity for Wal-Mart," he said during a conference call with reporters.
That opportunity includes both the desire for consumers to save money and the prospect for improved spending at some point, a Wal-Mart spokesman said.Moncler women Light JacketsMoncler Hoody on saleMoncler Polo shirt on saleMoncler Down Jackets on saleMoncler Light Jackets on sale